Economic Moats: The 7 Types And 4 Stocks I Own

The article is a portfolio-focused commentary explaining the concept of economic moats and how Alphabet, Costco, Visa, and Microsoft each defend their profits through durable competitive advantages. It argues that moats do not guarantee stock outperformance, but they can protect margins and support long-term compounding. Alphabet is highlighted for network effects and switching costs, Costco for low-cost leadership, membership lock-in, and brand power, Visa for network effects and massive payment infrastructure, and Microsoft for switching costs, brand, and capital intensity. The piece also flags key risks: Visa faces regulatory pressure, Microsoft has suffered a weak 12–18 month stretch despite its moat, and Costco’s main risk is valuation rather than business quality. Overall, the article is bullish on the underlying businesses, emphasizing patience and business quality over short-term price action.